FOREIGN ENGAGEMENT
New investment act neither protects nor encourages inflows
Direct investment is one of the vital cogs needed to drive the machinery of our economy, helping it move more efficiently and productively. Whether it comes from the government, private citizens overseas, corporates or local organisations, direct investment is needed to stimulate the economy, inject it with new zest and push out the growth curve. The withholding of investment is a sure sign of either a lack of confidence in the future or apprehension shown by investors over the health of the economy. Our economy has in fact been grinding slowly to a halt for a number of years due to issues ranging from policy uncertainty to the reluctance of the ANC government to make the deep structural reforms that are required. The SA Reserve Bank recently downgraded its GDP growth forecast from 1.7% to 1.2% for 2018. In line with this, the government needs to produce legislation and policy that is transparent and reassuring for foreign direct investment (FDI) to help our economy.
The Prote...
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